Question

(2) You are told that standing up during the Cowboys football game will give you a better view of the field. However, if everyone stands up at the same time, then your view is obscured. This example best describes:

Group of answer choices

inclusion of an irrelevant variable.

an omission of a relevant variable.

a violation of ceteris paribus .

a fallacy of composition.

a post hoc ergo propter hoc fallacy.

(3)Use the following regression model and statistical data for the dependent variable BUS TRAVEL.
N = 40 Observations
Mean of Dependent Variable = 1933.175               
R-square = .0907
Standard Deviation of Dependent Variable = 2431.757
Error Sum of Squares = 1.821      
Standard Error of Residual = 742.911
F-statistic = 64.143
p-value = .0001
What is the level of confidence for the overall model?

Group of answer choices

not significant at a 90%, 95%, or 99% confidence level

95%

99%

90%

(4) Suppose in the regression model for BUS TRAVEL, the independent variable FARE has the following statistical information:
Parameter Estimate: - 238.654
T-stat: - 0.528
p-value: 0.600816
What is the significance level of the independent variable FARE ?

Group of answer choices

95%    

not significant at a 90%, 95%, or 99% confidence level

90%

99%

(5) Suppose in the regression model for BUS TRAVEL, the independent variable INCOME has the following statistical information:
Parameter Estimate: - 0.194
T-stat: - 3.001
p-value: 0.005090
What is the significance level of the independent variable INCOME ?

Group of answer choices

90%

95%

not significant at a 90%, 95%, or 99% confidence level

99%

Answer 1

Answer (2):

This is an example of fallacy of composition. A fallacy of composition happens when you believe that something is true for one individual but it may not be true for all the individuals. Another example of this is that you believe that if you leave early for a concert, you will not face any traffic. But if every individual thinks the same way and leaves early, you will face the same amount of traffic as before.

Thus, the correct option is a fallacy of composition.

Answer (3):

The p-value for the F-satistic ehich shows the overall fit of the model is given as 0.0001. P-value is significant when it is less than than the level of significance i.e alpha value. Level of significance is calculated as 100 minus the confidence level. This p-value is significant at 90%, 95% and 99% level of confidence as 0.0001<0.1, 0.0001<0.05 and 0.0001<0.01. So the highest level of confidence is 99%.

Thus, the correct option is 99%.

Answer (4):

The p-value for the independent variable FARE is given as 0.600816. As explained in part (3) this p-value is not significant at either 90%, 95% and 99% as 0.600816>0.1, 0.600816>0.05 and 0.600816>0.01.

Thus, the correct option is not significant at a 90%, 95%, or 99% confidence level.

Answer (5):

The p-value of the independent variable INCOME is given as 0.00509. As explained in part (3) this p-value is significant at 90%, 95% and 99% level of confidence as 0.00509<0.1, 0.00509<0.05 and 0.00509<0.01. So the highest level of confidence is 99%.

Thus, the correct option is 99%.